HK Stock Market Move | YANCOAL AUS (03668) rose more than 4% with second quarter coal production reaching 17.5 million tons. Institutions are optimistic about the company's external mergers and acquisitions for future growth.

YANCOAL AUS (03668) rose more than 4%, up 4.08% to 32.12 Hong Kong dollars with a trading volume of 177.297 million Hong Kong dollars as of the time of reporting. On the news front, on July 20, YANCOAL AUS released its second quarter report ending June 30, 2026. The raw coal production was 17.5 million tons under 100% basis. The saleable coal production was 13.8 million tons under 100% basis. The equity saleable coal production was 10.8 million tons. The equity saleable coal sales volume was 11.6 million tons. The average coal sales price was 160 Australian dollars per ton. The cash balance as of June 30, 2026, was 2.01 billion Australian dollars. In the second quarter of 2026, the overall coal sales price was 160 Australian dollars per ton, with thermal coal prices increasing by 11% compared to the first quarter of 2026, and metallurgical coal prices rising by 3%. Zhongtai research report pointed out that in 2025, YANCOAL AUS achieved a raw coal production of 67 million tons and saleable coal production of 50.8 million tons, with year-on-year growth of 6.86% and 6.28% respectively; combined with the continuous decrease in unit cash costs since 2023, the core mine costs have been at a low level in the industry for a long time, and the company's profitability has strong resilience. In 2026, the company is advancing the acquisition of an 80% stake in the Red Falcon coal mine, expecting an additional saleable coal equity production of approximately 4.8 million tons per year. The bank believes that leveraging its advantage of being in the lower cost range of the global metallurgical coal cost curve, it is expected to provide stable incremental growth and improve the company's performance, opening up growth opportunities in the company's coal business.